HOUSTON--(BUSINESS WIRE)-- Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD) today announced its financial results for the three and six months ended June 30, 2026.

Financial Highlights (2Q 2026 compared to 2Q 2025, as applicable)

• Net income attributable to common unitholders: a record $1.8 billion, $0.84 per diluted common unit, up 28%
• Adjusted EBITDA: a record $2.8 billion, up 17%
• Operational DCF: a record $2.3 billion, which provided 1.9x coverage of distributions declared for 2Q 2026, up 21%; retained $1.1 billion of DCF
• Adjusted CFFO: a record $2.5 billion, up 19%
• Common unit repurchases: $159 million for the quarter and $405 million for the 12 months ended June 30, 2026; 34% cumulative utilization of $5.0 billion buyback program
• For the 12 months ended June 30, 2026, the payout ratio, comprised of distributions to common unitholders and common unit buybacks, was 56% of Adjusted CFFO
• Distributions declared: $0.56 per common unit, or $2.24 per common unit annualized, up 2.8%

Capital Investment and Operational Highlights (2Q 2026 compared to 2Q 2025, as applicable)

• Record equivalent pipeline volumes: 14.7 MMBPD, up 8%
• Record marine terminal volumes: 2.8 MMBPD, up 33%
• Assets placed into service: Second phase of our Neches River Terminal in Texas
• Capital investments for 2Q 2026: $1.2 billion, comprised of $1.0 billion for growth capital projects and $140 million for sustaining capital expenditures
• Announced plans to construct a new 150 MBPD NGL fractionator (Frac 15) at our Mont Belvieu area complex
• Announced plans to construct a new 300 MMcf/d Gas Processing Plant (Plant 13) in the Delaware Basin and a new 300 MMcf/d Gas Processing Plant (Plant 11) in the Midland Basin; expected to begin service in the third quarter of 2028 and the first quarter of 2029, respectively
• Growth capital spending for 2026, net of $599 million of proceeds from asset sales, is expected to be in the range of $2.9 to $3.4 billion; and $600 million for sustaining capital expenditures

Conference Call to Discuss Second Quarter 2026 Earnings

Enterprise will host a conference call today to discuss second quarter 2026 earnings. The call will be webcast live beginning at 9:00 a.m. CT and may be accessed by visiting the partnership’s website at www.enterpriseproducts.com.

Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), distributable cash flow (“DCF”), Operational distributable cash flow (“Operational DCF”), Adjusted cash flow from operations (“Adjusted CFFO”), total gross operating margin, and adjusted free cash flow (“Adjusted FCF”) are non-generally accepted accounting principle (“non-GAAP”) financial measures that are defined and reconciled later in this press release.

As used in this press release, “NGL” means natural gas liquids, “LPG” means liquefied petroleum gas, “BPD” means barrels per day, “MBPD” means thousand barrels per day, “MMBPD” means million barrels per day, “MMcf/d” means million cubic feet per day, “Bcf/d” means billion cubic feet per day, “BBtus/d” means billion British thermal units per day, “TBtus/d” means trillion British thermal units per day, and “PDH” means propane dehydrogenation.

“Enterprise reported strong volumes, earnings and cash flow for the second quarter of 2026,” said A. J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. “The partnership handled record pipeline and marine terminal volumes during the quarter due in part to strong international demand for U.S. energy in April and May. We also benefited from new assets and expansion projects that began operating and commissioning activities within the last twelve months including Frac 14 at our Mont Belvieu area complex and the expansions of our Neches River and Morgan’s Point Terminals. Total pipeline equivalent volumes for the quarter increased 8 percent to 14.7 MMBPD compared to the second quarter of 2025 while total marine terminal equivalent volumes increased 33 percent to 2.8 MMBPD compared to the second quarter of last year. We also reported a 14 percent increase in propylene production volumes to a record 134 MBPD during the second quarter of 2026 as we achieved higher utilization rates at our propylene production facilities. While not a record, inlet volumes to our natural gas processing plants increased to 8.1 Bcf/d in the second quarter of 2026 primarily due to a 14 percent increase in volume to our natural gas processing plants in the Permian Basin.

“This volume growth, an increase in the value of our equity NGL production and higher marketing volumes and margins led to record earnings and cash flow in the second quarter of 2026. Operational distributable cash flow for the quarter increased 21 percent to a record $2.3 billion compared to the second quarter of last year. This provided 1.9 times coverage of the partnership’s cash distribution. In addition to $1.2 billion of cash distributions to unitholders, we retained $1.1 billion to apply to internally funded growth capital expenditures and buybacks,” stated Teague.

“I would like to congratulate our engineering and operations team for enabling Enterprise to respond to the acute global demand for U.S. energy by accelerating the completion of construction and beginning of commissioning activities for the expansion of our Neches River Terminal. Volumes at our marine terminals have returned to normal levels in June and July after the initial rush to backfill volumes affected by hostilities in the Middle East in April and May. Global shipping of energy, however, continues to be disrupted due to damage to production facilities and navigation restrictions in the Middle East, longer transits due to reroutes and the continuing uncertainty in the region,” continued Teague.

“During the quarter, we approved the construction of two new 300 MMcf/d gas processing plants located in the Permian Basin and a 150 MBPD NGL fractionator at our Mont Belvieu area complex. These assets support ongoing production growth in the Permian Basin and international demand for U.S NGLs. This brings the partnership’s total organic growth projects under construction to $6.5 billion. The next major capital project scheduled for completion is our expansion of the LPG export marine terminal on the Houston Ship Channel that is expected to begin operations by year end 2026,” concluded Teague.

Review of Second Quarter 2026 Results

Total gross operating margin for the second quarter of 2026 increased $514 million to a record $3.0 billion compared to the second quarter of 2025. This includes a $77 million increase in unrealized mark-to-market (“MTM”) gains on financial instruments used in our hedging activities.

NGL Pipelines & Services – Gross operating margin from the NGL Pipelines & Services segment was $1.5 billion for the second quarter of 2026 compared to $1.3 billion for the second quarter of 2025.

Gross operating margin from the natural gas processing business and related NGL marketing activities was $512 million for the second quarter of 2026 compared to $341 million for the second quarter of 2025. Natural gas processing plant inlet volumes were 8.1 Bcf/d in the second quarter of 2026, a 4 percent increase compared to the second quarter of 2025. Notably, inlet volumes to the partnership’s natural gas processing plants in the Permian Basin increased 14 percent to 4.3 Bcf/d for the second quarter of 2026. Total fee-based natural gas processing volumes increased 182 MMcf/d to 7.4 Bcf/d in the second quarter of 2026 compared to the second quarter of last year. Total equity NGL-equivalent production volumes increased 7 percent to 230 MBPD in the second quarter of 2026 compared to the second quarter of 2025. The following highlights summarize selected variances within this business, with results for the second quarter of 2026 as compared to the second quarter of 2025:

• NGL marketing reported an $83 million increase in gross operating margin driven by higher average sales margin of $51 million, higher MTM earnings of $19 million and higher sales volumes of $13 million.
• Midland Basin natural gas processing facilities reported a $47 million increase in gross operating margin primarily due to higher average processing margins, which includes a $38 million increase attributable to hedging activities, and increased volumes. Fee-based natural gas processing volumes increased 218 MMcf/d and equity NGL-equivalent production volumes increased 10 MBPD.
• Delaware Basin natural gas processing facilities reported a net $36 million increase in gross operating margin primarily due to higher average processing margins and increased volumes, partially offset by higher operating costs. Fee-based natural gas processing volumes increased 288 MMcf/d and equity NGL-equivalent production volumes increased 8 MBPD.

Gross operating margin from the NGL pipelines and storage business was $757 million for the second quarter of 2026 compared to $732 million for the second quarter of 2025. Total NGL pipeline volumes were a record 4.9 MMBPD in the second quarter of 2026, a 351 MBPD, or 8 percent, increase over the second quarter of 2025. Total NGL marine terminal volumes were a record 1.2 MMBPD in the second quarter of 2026, a 284 MBPD increase compared to the second quarter of 2025. The following summarizes the variance for this business, with results for the second quarter of 2026 as compared to the second quarter of 2025:

• Gross operating margin from the Morgan's Point, Neches River and Enterprise Hydrocarbons terminals and the associated Channel pipeline increased $35 million primarily driven by higher volumes, including the completion of the second phase of the Neches River Terminal in May 2026. On a combined basis, ethane export volumes increased by 143 MBPD and propane export volumes increased 141 MBPD.

Gross operating margin from the NGL fractionation business was a record $276 million for the second quarter of 2026 compared to $224 million for the second quarter of 2025. Total NGL fractionation volumes were 1.9 MMBPD for the second quarter of 2026 compared to 1.7 MMBPD for the second quarter of 2025. The following summarizes the variance for this business, with results for the second quarter of 2026 as compared to the second quarter of 2025:

• Gross operating margin from our Mont Belvieu area NGL fractionation complex increased $54 million primarily due to a 207 MBPD increase in fractionation volumes and higher ancillary service revenues, partially offset by higher operating costs. The higher fractionation volumes were primarily due to Frac 14, which was placed into service in the fourth quarter of 2025.

Crude Oil Pipelines & Services – Gross operating margin from the Crude Oil Pipelines & Services segment was $485 million for the second quarter of 2026 compared to $403 million for the second quarter of 2025. Total crude oil pipeline volumes were a record 3.0 MMBPD in the second quarter of 2026, a 403 MBPD increase compared to the second quarter of 2025. Total crude oil marine terminal volumes were a record 1.1 MMBPD in the second quarter of 2026 compared to 811 MBPD in the second quarter of 2025. The following highlights summarize selected variances within this segment, with results for the second quarter of 2026 as compared to the second quarter of 2025:

• On a combined basis, gross operating margin from our Texas crude oil pipelines, related terminals and marketing activities (excluding the Seaway Pipeline) increased $69 million primarily due to higher average sales margins and sales volumes, partially offset by higher operating costs. Crude oil pipeline volumes and EHT crude oil marine terminal volumes increased 265 MBPD and 227 MBPD, respectively.
• Gross operating margin from the Seaway Pipeline system increased $23 million primarily due to higher pipeline volumes and crude oil marine terminal volumes (net to our interest), which benefited from exports of crude oil originating from the U.S. Strategic Petroleum Reserve. Net to our interest, pipeline volumes increased 138 MBPD and crude oil marine terminal volumes increased 86 MBPD.

Natural Gas Pipelines & Services – Gross operating margin for the Natural Gas Pipelines & Services segment was a record $556 million for the second quarter of 2026 compared to $417 million for the second quarter of 2025. Total natural gas pipeline volumes were 21.0 TBtus/d in the second quarter of 2026, a 3 percent increase compared to 20.4 TBtus/d for the same quarter in 2025. The following highlights summarize selected variances within this segment, with results for the second quarter of 2026 as compared to the second quarter of 2025:

• Natural gas marketing reported a $91 million increase in gross operating margin primarily due to $60 million of higher average sales margins and $31 million of higher MTM earnings.
• Texas Intrastate System gross operating margin increased $32 million primarily due to higher average transportation and related fees and increased pipeline volumes.
• On a combined basis, gross operating margin from our Delaware Basin Gathering System and Midland Basin Gathering System increased a net $13 million primarily due to higher gathering volumes partially offset by higher operating costs.

Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment was $418 million for the second quarter of 2026 compared to $354 million for the second quarter of 2025. Total segment pipeline volumes were a record 1.2 MMBPD in the second quarter of 2026 compared to 1.0 MMBPD in the second quarter of 2025. Total marine terminal volumes were 422 MBPD in the second quarter of 2026 compared to 328 MBPD for the second quarter of 2025. The following highlights summarize selected variances within this segment, with results for the second quarter of 2026 as compared to the second quarter of 2025:

• The partnership’s ethylene business reported a $23 million increase in gross operating margin primarily due to a 20 MBPD increase in export volumes, and higher sales and pipeline volumes.
• Propylene production and related activities reported a net $19 million increase in gross operating margin primarily due to record propylene production volumes, which resulted in higher propylene sales volumes, and higher average propylene sales margins, partially offset by higher operating costs.
• Gross operating margin from our octane enhancement and related plant operations increased $8 million due to higher average sales margins and higher MTM earnings.

Use of Non-GAAP Financial Measures

This press release and accompanying schedules include the non-GAAP financial measures of total gross operating margin, Adjusted CFFO, Adjusted FCF, DCF, Operational DCF and Adjusted EBITDA. The accompanying schedules provide definitions of these non-GAAP financial measures and reconciliations to their most directly comparable financial measure calculated and presented in accordance with GAAP. Our non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flow provided by operating activities or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as we do.

Company Information and Use of Forward-Looking Statements

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products transportation, storage and marine terminals; and a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. The partnership’s assets currently include more than 50,000 miles of pipelines; over 300 million barrels of storage capacity for NGLs, crude oil, petrochemicals and refined products; and 14 billion cubic feet of natural gas storage capacity.

This press release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve certain risks and uncertainties, such as the partnership’s expectations regarding future results, capital expenditures, project completions, liquidity and financial market conditions. These risks and uncertainties include, among other things, insufficient cash from operations, adverse market conditions, governmental regulations and other factors discussed in Enterprise’s filings with the U.S. Securities and Exchange Commission. If any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.

The weighted-average indicative market price for NGLs (based on prices for such products at Mont Belvieu, Texas, which is the primary industry hub for domestic NGL production) was $0.68 per gallon during the second quarter of 2026 versus $0.58 per gallon during the second quarter of 2025. Fluctuations in our consolidated revenues and cost of sales amounts are explained in large part by changes in energy commodity prices. An increase in our consolidated marketing revenues due to higher energy commodity sales prices may not result in an increase in gross operating margin or cash available for distribution, since our consolidated cost of sales amounts would also be expected to increase due to comparable increases in the purchase prices of the underlying energy commodities. The same type of relationship would be true in the case of lower energy commodity sales prices and purchase costs.

Adjusted CFFO is a non-GAAP measure that represents net cash flow provided by operating activities before the net effect of changes in operating accounts. We believe that it is important to consider this non-GAAP measure as it can often be a better way to measure the amount of cash generated from our operations that can be used to fund our capital investments or return value to our investors through cash distributions and buybacks, without regard for fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period.

Adjusted FCF is a non-GAAP measure that reflects cash generated from our operations, excluding the net effect of changes in operating accounts, after accounting for capital expenditures. We believe that Adjusted FCF is important to traditional investors since it reflects the amount of cash available for reducing debt, investing in additional capital projects and/or paying distributions, without regard for fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period. Since we partner with other companies to fund certain capital projects of our consolidated subsidiaries, our determination of Adjusted FCF appropriately reflects the amount of cash contributed from and distributed to noncontrolling interests.

DCF is an important non-GAAP liquidity measure for our common unitholders since it serves as an indicator of our success in providing a cash return on investment. Specifically, this liquidity measure indicates to investors whether or not we are generating cash flows at a level that can sustain or support an increase in our quarterly cash distributions. DCF is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is, in part, measured by its yield, which is based on the amount of cash distributions a partnership can pay to a common unitholder.

Operational DCF, which is defined as DCF excluding the impact of proceeds from asset sales and other matters and monetization of interest rate derivative instruments, is a supplemental non-GAAP liquidity measure that quantifies the portion of cash available for distribution to common unitholders that was generated from our normal operations. We believe that it is important to consider this non-GAAP measure as it provides an enhanced perspective of our assets’ ability to generate cash flows without regard for certain items that do not reflect our core operations.

The GAAP measure most directly comparable to DCF and Operational DCF is net cash flow provided by operating activities.

Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our financial statements, such as investors, commercial banks, research analysts and rating agencies, to assess the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; the ability of our assets to generate cash sufficient to pay interest and support our indebtedness; and the viability of projects and the overall rates of return on alternative investment opportunities.

Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measure most directly comparable to Adjusted EBITDA is net cash flow provided by operating activities.

We evaluate segment performance based on our financial measure of gross operating margin. Gross operating margin is an important performance measure of the core profitability of our operations and forms the basis of our internal financial reporting. We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results.

The term “total gross operating margin” represents GAAP operating income exclusive of (i) depreciation, amortization and accretion expenses (excluding amortization of major maintenance costs for reaction-based plants and amortization of finance lease right-of-use assets), (ii) impairment charges, (iii) gains and losses attributable to asset sales and related matters, and (iv) general and administrative costs. Total gross operating margin includes equity in the earnings of unconsolidated affiliates, but is exclusive of other income and expense transactions, income taxes, the cumulative effect of changes in accounting principles and extraordinary charges. Total gross operating margin is presented on a 100 percent basis before any allocation of earnings to noncontrolling interests. The GAAP financial measure most directly comparable to total gross operating margin is operating income.

Total gross operating margin excludes amounts attributable to shipper make-up rights as described in footnote (5) to Exhibit A of this press release.

The following table summarizes the mark-to-market gains (losses) for the periods indicated:

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Joe Theriac, Vice President, Finance & Investor Relations, (713) 381-6394

Rick Rainey, Vice President, Media Relations, (713) 381-3635

Source: Enterprise Products Partners L.P.